Method of Computing a member's share in income of association of persons or body of individuals - Section 309 (New) / Section 67A (Old)

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.... 309 and the succeeding sections 310 and 311, an AOP or BOI does not include: • a company; • a co-operative society; • a society registered under the Societies Registration Act, 1860; or • a society registered under any corresponding law in force in any part of India. Section 309(2) - Computation of Member's Share Where an assessee is a member of an AOP/BOI and the shares of the members are determinate and known, the member's share in the income or loss is computed in the manner prescribed in section 309(2). Section 309(2)(a) - Deduction of Interest, Salary, Bonus, Commission or Remuneration First, any: • interest; • salary; â....

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....nd pays interest on such borrowed capital, that interest is deductible while computing the member's share chargeable under the head: "Profits and gains of business or profession" in respect of his share in the income of the AOP/BOI. Section 309(5) - Meaning of "Paid" For purposes of section 309, "paid" means: • actually paid; or • incurred according to the method of accounting on the basis of which the profits or gains are computed under the head "Profits and gains of business or profession." Comparative Analysis: Section 67A of the Income-Tax Act, 1961 vs. Section 309 of the Income-Tax Act, 2025 Particulars Section 67A - Income-tax Act, 1961 Section 309 - Income-tax Act, 20....